GK Energy Share Price Jumps 9% After ₹454.5 Crore Rooftop Solar Order
Add Preferred News Source
GK Energy shares rose 9% after the company won a ₹454.5 crore rooftop solar order covering 1 lakh households, with total capacity of 100 MW.
Shares of GK Energy jumped to 9% to ₹134.81 on Wednesday, August 26, after the renewable energy company announced a ₹454.5 crore order to install rooftop solar systems across 1 lakh households.
The Pune-based company said it had received a Letter of Empanelment from a state government-owned power distribution company for the project. The assignment involves installing 1 kW solar systems at each household, taking the total capacity covered by the order to 100 MW.
The contract has been awarded at ₹45,450 per kW, including GST. For GK Energy, the order is equivalent to nearly 90% of the ₹505 crore revenue it reported in the June quarter, underlining the size of the project relative to its recent business.
What does the GK Energy order involve?
GK Energy will handle the project from design and engineering through to supply, installation, testing and commissioning of the rooftop systems. It will also provide operation and maintenance services for five years.
The company said individual installations need to be completed within 60 days from the date of the respective work orders.
GK Energy classified the contract as a one-time domestic order. It also said that neither its promoters and promoter group nor group companies have any interest in the entity that awarded the contract.
GK Energy Q1 results
The order comes as GK Energy's business recorded strong growth in the June quarter.
Consolidated net profit increased 54% year-on-year to ₹57 crore in Q1 FY27, compared with ₹37 crore in the same period last year. Revenue climbed 55.4% to ₹505 crore from ₹325 crore.
EBITDA rose 44% to ₹82.4 crore, while profit before tax increased to ₹80.3 crore from ₹50.5 crore.
Despite the rise in operating profit, EBITDA margin narrowed to 16.3% from 17.6% a year earlier, suggesting that operating costs grew faster than EBITDA during the quarter.
GK Energy's business is centred on two areas, solar engineering, procurement and construction (EPC), and trading of solar cells and other solar products. EPC continued to be the company's largest revenue contributor in Q1.
The sharp move in GK Energy shares on Wednesday came as investors assessed the scale of the new rooftop solar order alongside the company's recent revenue and profit growth.
Also Read - 6 Stocks Hit Fresh Record Highs Today Despite Market Weakness: Anthem Biosciences, Divi’s Labs, TVS Motor
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
Right Tools, Rich Insights
